| Benefits |
 Are you aware that Life insurance policies are not attachable under certain circumstances.
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As per section 60 (kb) of The Code of Civil Procedure, all money payable under a policy of insurance on the life of the judgment debtor, are not attachable.
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Section 6 of the MWP Act states that the benefits under a Life Insurance Policy taken by a Married man, under MWP Act for the benefit of the married man's wife, or children or any of them, shall be payable only to the wife or children according to the ratio decided by the Life Assured. Further it states that the said Policy does not form part of the estate (property) of the deceased Husband. Hence the husband does not have any control over the Policy and is not his asset. Therefore the said Policy cannot be attached by the Creditors of other Legal Heirs of the deceased husband.
It is to be noted that unlike in the case of other Life Insurance Policies which can be claimed by other Legal Heirs also (even though may not be attachable), MWP Act Policies can neither be claimed by the other Legal Heirs nor by the Husband's Creditors. Even the husband cannot claim any benefit. Therefore, an absolute estate is created in favour of the wife or children. This is a special privilege given by Law only to a Life Insurance Policy taken by a married man. This benefit is not available for any other asset.
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Life Insurance also offers you tax benefits. Check the chart below for benefits on life insurance, pension plans and health insurance.
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| Tax Benefits |
Section |
Permitted deduction |
Exceptions |
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Premium paid for life insurance
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80C |
INR 100,000 |
Amount of premium paid in a financial year for policy in excess of 20% of the actual capital sum assured, then deduction will be allowed only for premiums up to 20% of the sum assured. .
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Premium paid for pension plans
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80CCC |
INR 100,000 |
Benefit reversed if policy lapses; amount received on surrender (whole/part) of annuity plan and amount received as pension is taxed as income
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| Premium paid for medical insurance |
80D |
INR 15,000 for self, spouse and dependent children + INR 15,000 for parents; INR 20,000 for individuals above 65
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Benefits under insurance
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10 (10D) |
Sum received under a life insurance policy, including the sum allotted by way of bonus on such policy is exempt of tax
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Any sum received under a Keyman Insurance Policy, or any sum received other than as death benefit under an insurance policy that has been issued on or after April 2003 and if the premium paid in any of the years during the term of the policy is more than 20% of the sum assured
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